(1) Where a mortgage is executed in favour of a Land
Development Bank for payments of prior debts of the mortgager, such
bank shall, notwithstanding anything contained in the Transfer of
Property Act, 1882 (Central Act 4 of 1882), by notice in writing, require
any person to whom any such debt is due, to receive payment of such
debt or part thereof from the bank at its registered office, within such
period as may be specified in the notice.
(2) Where any such person fails to accept such notice, or to receive such payments, such debts or part thereof, as the case may be, shall cease to carry interest from the expiry of the period specified in the notice:
Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the Land Development Bank towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by him
(2) Where any such person fails to accept such notice, or to receive such payments, such debts or part thereof, as the case may be, shall cease to carry interest from the expiry of the period specified in the notice:
Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the Land Development Bank towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by him